The BRRRR strategy’s defining feature is pulling invested cash back out through a refinance sized off the after-repair value, not the purchase price — which is what makes the strategy repeatable with limited capital.
How it works
Total cash invested is purchase price plus rehab plus holding costs. The refinance loan is the ARV multiplied by the lender’s allowed loan-to-value. Subtracting the refinance loan from total invested shows how much of the investor’s own cash is still tied up in the deal — ideally little or none.
What this does not include
This doesn’t include refinance closing costs, which reduce the actual cash received at refinance below the loan amount calculated here, or a seasoning period some lenders require before allowing a cash-out refinance on a recently purchased property.
How to use this calculator
- Enter purchase price, rehab cost, and holding costs.
- Enter ARV and the refinance lender’s loan-to-value.
Frequently asked questions
What does a negative “cash left in deal” mean?
The refinance pulled out more cash than was originally invested — the investor got their capital back plus extra, which they can redeploy into the next deal.
Why does ARV matter more than purchase price here?
Because the refinance loan is sized off ARV, not the purchase price — a property bought below market and rehabbed well can refinance for more than the total invested, which is the whole point of the strategy.
What if the refinance appraisal comes in lower than expected?
Less cash comes out, leaving more of the investor’s capital still tied up — appraisal risk is one of the biggest practical risks in this strategy, and this calculator doesn’t model appraisal uncertainty.
